This year due to a coincidence of the lunar calendar, Eid-ul-Fitr and Durga Puja, two major religious festivals of India, were celebrated within a week of each other in late September. After twenty-two years, I was able to witness both in my birth city of Kolkata (Calcutta, India). One common thread between the Pujas and Eids is the propensity amongst the faithful to shop for new clothes and gifts with the same fervor and joy as Christmas shoppers in my adopted homeland of United States. The area colloquially called New Market is the nexus of this buying spree in Kolkata. I had a few things to shop for my family and quite naturally gravitated towards where all Kolkata roads seemed to meet.

Fighting the heat and humidity of a late September afternoon and amidst the crushing crowds, I could not help but notice that the overwhelming majority of the signs strewn across the myriad of shops were Puja greetings, well-wishing those celebrating Durgautsov. Conspicuous in their absence were well wishes to the Muslim community on the occasion of their Eid. Muslims who make up over twenty percent of the population in Kolkata, have become its invisible minority, increasingly squeezed out of the public square in Kolkata and beyond.

In 1947, after India’s bloody and tragic partition, many Muslims, particularly the elites, migrated to Pakistan leaving behind a political and social vacuum. Those who chose to remain Indian outnumbered those who opted for Pakistan. Yet Indian Muslims have been stigmatized as India’s fifth column. The subsequent rise of the Hindu political identity marked by the Hinduvta movement, the lack of creative ideas in the Muslim community towards self-empowerment, the post-independence educational curriculum depicting Muslims as outsiders, Islamophobia, and violence in the name of Islam; all have contributed to marginalize India’s Muslims.

Writing a book review in The Hindu, A.G. Noorani commented, “It (the Muslim problem) must be treated urgently and seriously as one of the national problems. Discrimination against Muslims has been a blot on India's record as a democracy. That blot must be erased with determination and speed by all Indians who cherish the Great Indian Ideal.” Thus, the idea behind empowering Muslims in India should not be viewed as either appeasement to a voting block or solely an altruistic program to uplift one of India’s most downtrodden socio-religious communities.

Persistent religious discrimination and recurring communal violence have marred India’s ideals and values. It has diminished India’s narrative of a secular state where multi-ethnic and multi-religious communities can safely and freely reside. The erosion of the constitutionally protected fundamental rights has been especially disillusioning for India’s Muslim youth. The repeated failure of governments, both local and national, to take appropriate measures to protect the rights of minority citizens has prompted the U.S. Commission on International Religious Freedom to put India on its 2009 Watch List.

Despite the obvious need to correct the problem, religious fanatics and fundamentalists have espoused the notion that Muslim empowerment is a zero-sum game. In particular the Hinduvta movement has cultivated a mistaken notion that any gain to the Muslim community is a loss for the Hindus. But in today’s globalized society, power resides not so much in unilateralism (shown to be glaringly ineffective by George W. Bush) but rather in effective mutuality and sharing between all who have a stake in a nation’s future. Thus, the issue of Muslim empowerment should be as much a Hindu concern as it is a Muslim aspiration.

Empowering Muslims in India requires a three pronged effort with all of the parts working together in a holistic manner to convert today’s challenge into tomorrow’s opportunities. The first prong undoubtedly lies on the shoulders of India’s Muslim community. Instead of succumbing to the political rhetoric being espoused by self-appointed leaders, Muslims must leave aside their cynicism and engage in the Indian political, social and cultural life with vigor and positivity. The Civil Rights movement in America can serve as an inspirational model. Integration will be more effective if Indian Muslims harmonize their Islamic identity with their Indian one.

Such integrative steps can happen only if India’s state, local and central governments come forward with bold new proposals to correct the glaring deficiencies pointed out by the Sachar Committee Report. Although much of the grievances in the report were well known to Muslims, the Sachar Report is an eye opener to those who assumed away the Muslim problem or blamed it on some foreign conspiracy. The Sachar Report is poignant in its pathos that the disempowerment of India’s Muslims is an Indian problem created by decades of neglect and abuse, which hangs as an albatross on India’s otherwise vibrant democracy. Quite ironically, states like West Bengal and Kerala that boasted the most liberal governments were just as culpable in their lack of attention to Muslim empowerment as regions that hosted more religiocentric governments, like Gujarat. I was shocked to learn that in my birth state of West Bengal, Muslim representation in state public sector undertakings is exactly zero percent!

Other statistics are equally grim - less than 4 percent Muslims graduate from school; 1 in 25 undergraduate students and 1 in 50 post graduate students in premier university and colleges are Muslims; although Muslims are nearly 14 percent of India’s population their share in government employment is 4.9 percent; in India’s security agencies, Muslim representation is 3.2 percent; only 2.1 percent of Muslim farmers own tractors; just 1 percent own hand pumps for irrigation; if Muslims do outnumber majority Hindus in anywhere, it is predictably as a proportion of the prison population (much like Blacks in America).

It will be a mistake to leave the task of Muslim empowerment to the goodwill of governments alone. As India transforms itself into a market economy, it is the private sector that will play a bigger role in both the economic and social transformation of India. India’s big-business community can, if they choose to, play a positive role in empowering India’s Muslim minority. One mechanism for creating an Indian corporate workforce that is reflective of India’s socio-religious communities is through the voluntary adoption of the UN Global Compact. Launched in the year 2000 the Global Compact is an effort by the United Nations to usher-in a more sustainable, just and inclusive global economy.

To achieve this goal, the Global Compact outlined ten principles broadly classified in the areas of human rights, labor, the environment and anti-corruption. If the business community takes the necessary steps to apply these principles, it will inevitably lead to not only preserving the profit margins for the businesses but to a general well being of the society. By ending all overt and covert discriminations in labor practices, businesses can assist in empowering India’s minorities. By adhering to higher environmental standards businesses can also help the poor (including but not limited to Muslims) who are usually the disproportionate victims of environmental degradation.

The issue of Muslim empowerment is not so much about the Muslim community as it is about India’s future. A more educated Muslim community will constitute a more enlightened Indian work force leading to better business opportunity and a more sustainable growth for India’s economy. The next step in India’s economic evolution will likely not come on the backs of call centers and outsourcing. Rather it will come as result of higher paying service oriented jobs that require a large educated work force. An empowered Muslim community will also mean fewer security headaches and lesser social tension.

The Sachar commission recommends that 15 percent of all government funds be allocated to Muslim welfare and development. While this may work in the short run, in the long run Muslims need equal opportunities not quotas or handouts. This can come about via the establishment of “Equal Opportunities Commission” much like the Equal Employment Opportunity Commission in the United States. Such a commission, armed with judicial powers, can greatly aid in empowering India’s Muslim much like the EEOC continues to do for America’s minority communities. These suggestions, among the many made by the Sachar report, are not difficult to implement provided governments and citizens alike make a commitment to change their mindset that for too long has regarded the issue of Muslim empowerment as a zero-sum game relegating them to become India’s invisible minority.

A recent Bangladesh Bank (BB) policy paper asserts that moving into the future, Bangladesh will have to rely heavily on capital markets to raise the necessary money to fund capital expansion projects. Capital expansion projects need a lot of money and relying solely on banks to raise that money is inefficient. In Bangladesh, financing via debt market is generally small and stock markets are in their infancy, albeit growing rapidly. Stock market capitalisation has grown at an average annual rate of 77 per cent from 2003 to 2008.

Despite such positive signs, Bangladesh has an Achilles' heel as it has been consistently cited by Transparency International (TI) as one of the countries with the highest levels of corruption. Transparency International, a civil society organisation, cites the economic cost of corruption as, "Corruption leads to the depletion of national wealth. It is often responsible for the funneling of scarce public resources to uneconomic high-profile projects, such as dams, power plants, pipelines and refineries, at the expense of less spectacular but fundamental infrastructure projects such as schools, hospitals and roads, or the supply of power and water to rural areas. Furthermore, it hinders the development of fair market structures and distorts competition, thereby deterring investment." The benefits from the development of the financial markets can easily be undone by the general pervasiveness and permissiveness of corruption.

The centrality of ethics in economic development is easily discerned from the fact that the three largest economies of the world US, Japan and Germany all rank among the top 20 (least corrupt) in the Corruption Perception Index. In developed countries like the US, business school curriculums and professional organisations are accelerating the integration of ethics. The hope is that effectively integrating ethics and social responsibility into pedagogy will allow the grooming of professionals who will avoid the ethical pitfalls that have become the hallmark of the many financial scandals in the recent past. Bangladesh should not wait to address the issue of ethics after some scandal rocks its markets. Rather a proactive strategy can avoid major scandals allowing Bangladesh to sustain its economic development.

The solution lies in a pursuing a two-pronged strategy. First, ethics has to be integrated in the business curriculum so that tomorrow's business leaders graduate armed with the motivation and knowledge about why ethics matter. The second strategy requires major businesses to voluntarily adopt the principles of the UN Global Compact.

Popular text books in finance and business state that the goal of the financial manger is, "to maximise the current value per share of the existing stock," fostering a notion that shareholder wealth maximisation is devoid of any moral concern. Such ambiguity leaves students unsure about the role of ethics in business. At worst, practitioners may treat ethics and shareholder wealth maximisation as a zero-sum game, more of one leading to less of the other. Effective integration of ethics will come about if students are convinced that shareholder wealth maximisation is indeed consistent with the pursuit of ethics and social responsibility.

Ethics need not be exclusively policed using paternalistic mechanisms. Rather, the marketplace can moderate the urge to be self-centered. This is possible so long as media and civic society accept their responsibility of naming and shaming ethical violators. Take for example the well publicised controversy regarding American talk show host Don Imus. On the April 4, 2007, he said referred to the players in the women's basketball team at Rutgers University as "nappy-headed hoes," a description deemed offensive to the teams' Black players. This was not the first time Imus had used derogatory language to insult minorities. A few days later, facing a surge of protests, Imus' show was cancelled and later he was fired from his position by CBS, although Imus had not violated any law.

Was CBS' action consistent with shareholder wealth maximisation? NGOs made appeals to advertisers withdraw their support of Imus' show. Customers threatened advertisers with economic sanctions. By firing Imus, CBS acted as a conduit for the ethical beliefs of the stakeholders. CBS did not need to become expert on the US. Constitution nor did it need to conduct a shareholder referendum to determine their moral beliefs. CBS made an ethical decision but within the framework of what is called the marketplace of morality.

In Bangladesh, purveyors of Islamic finance are assuming prominence. Islamic universities are competing side-by-side with established secular institutions. Scholars dating back to Adam Smith and Max Weber have argued that religion plays a fundamental role in shaping economics. The development of a stronger ethical foundation for Bangladesh's financial markets can be aided by understanding the consistency between normative Islam and modern theories of virtue ethics.

The comparable word for ethics in Islam is 'akhlaq' or 'khuluq'. The issue of "internal good" is best captured in the two Islamic concepts of 'taqwa' (piety) and 'ihsan' (excellence). Having 'taqwa' allows a person to be aware of God's omnipresence and attributes, serving to remind believers of their responsibility towards God. 'Ihsan' pertains to obtaining perfection or excellence in worship, morals, manners, attitudes and social interactions.

The idea of "moral judgment" is best exemplified by two Islamic concepts of justice (adl) and trusteeship (khilafa). In pursuing wealth maximisation, people should not lie or cheat; they must uphold promises and fulfill contracts. Usurious dealings are prohibited. Excessive speculation is shunned. In the Islamic hermeneutics, the rich are not the real owners of their wealth; they are only the trustees. Thus, justice requires that the rich spend their wealth in accordance with the terms of the trust, one of the most important of which is fulfilling the needs of the poor. Islam views human beings as God's vicegerent or trustee (khalifa) on earth, implying that there is no conflict between the morality and the pursuit of economic success. Given the right motivation and means, all economic activity can assume the character of worship.

The second leg in the effective integration of ethics in finance rests with businesses voluntarily adopting the UN Global Compact. On July 26, 2000 the United Nations launched an innovative public-private partnership (PPP), calling it the UN Global Compact. The idea was to foster "social responsibility," amongst corporations. It was a call to the business community that their goal in managing businesses should not be exclusively focused on profit margins but in addition take steps to realise a more sustainable, just and inclusive global economy.

To achieve this goal, the Global Compact outlined ten principles broadly classified in the areas of human rights, labour, environment and anti-corruption. The Global Compact requires participating businesses to annually report their progress on the ten principles. If the business community takes the necessary steps to apply these principles, it will inevitably lead to not only preserving their profit margins but to a general well-being of the society. In particular, principle 10 of the Global Compact asks businesses to strive against corruption in all its forms, including extortion and bribery. Only 25 Bangladeshi companies have signed on to the UN Global Compact. Unfortunately, over half of them are classified as "non-communicating", having failed to comply with the reporting requirements. Eight Bangladeshi small and medium enterprises (SME) have signed on the UN Global Compact but only three have complied with all the reporting requirements. More businesses need to voluntarily adopt the UN Global Compact and this will come about only if civic society uses the marketplace of morality to demand business practices adhere to standards, which can ensure a more sustainable globalization.

Adam Smith defines "internal good" as "the man who acts according to the rules of perfect prudence, of strict justice, and of proper benevolence." Attaining "internal good" is necessary not just for altruistic reasons but also for profit making purposes. Providing profit by harming society perverts the purpose of business. An effective marketplace of morality, Dobson asserts will make financial markets truly ethical. He goes on to say, "Dishonesty and deceit would be anathema, because honesty and integrity are themselves internal goods. A truly ethical individual, pursuing internal goods, would never sacrifice honesty for material gain, but only too readily sacrifice material gain for honesty."

Get to Know Parvez

What was the best money you ever spent?Last year my wife and I made our first pilgrimage to the Muslim holy city of Mecca to fulfill our religious obligation of performing the Hajj (pilgrimage). It was indeed a journey of a lifetime. The trip was spiritually uplifting and also from a worldly perspective very eye opening. Not only did we understand the historical perspectives of the faith of Islam, we also took time to study the social and political conditions causing so many challenges in the Muslim world.

If you won the lottery, what would do with the money?I do not play the lottery. As a financial economist, I know that the cost of a lottery ticket exceeds the probability-weighted expected value of the payoff. So why overpay for an asset?

What is the best thing you ever won?During my undergraduate days, in addition to being a student of engineering, I used to take part in drama and theatre. I won an award for the best drama production at my university.

Tell us something about you that even your friends don't know:My love of poetry. I not only like English poetry (favorite American poets Langston Hughes and Emily Dickinson), but also indulge in poetry in Bengali, Urdu and Hindi (three major languages of India, where I was born). My other favorite poets are Rabindranath Tagore and Muhammad Iqbal.

Tell us about your family:I have two children, ages 7 and 11. My wife home-schools them. I was born in India. Both my parents live in Calcutta.

What person had the greatest impact on your life?My dad. From him I learned the value of giving back to society. He is a physician in India, and he spends most of his spare time helping orphans.

What are you most passionate about?Besides academic research, writing opinion editorials about Islam and the American Muslim experience.

What is your favorite thing about working at UNF?Generally speaking, small class size allows me to get to know my students better. I like to help them not just with academic work, but also offer help as a career adviser. Small class size also creates opportunities for more interactive teaching, which is challenging and stimulating.

If you could choose any other career, what would it be and why?I like what I do. I have never contemplated having another career. But if I were forced to choose then I would perhaps like to be a human rights lawyer or advocate. I am passionate about universal human rights. I find the advocacy of those rights intellectually quite challenging, as it requires addressing prejudices and stereotypes in creative ways.

What would you like to do when you retire?Write books that promote mutual understanding between cultures and societies.

If you were not working at UNF, what would you be doing?Working for some think-tank, writing policy papers.

What is your favorite way to blow an hour?Watch football.Who is the most famous person you ever met?Barack Obama. I met him during one of his recent visits to Jacksonville.

What do you hope to accomplish that you have not done yet?Help my children realize their dreams.

What was the first concert you ever attended, and what was the most recent concert you attended?

The first concert I attended was in India. My mom took me to a classical music concert. The most recent concert I attended was also a concert on Indian classical music, but this time the concert was held in America. The great Ali Akbar Khan, considered the National Living Treasure of India, was playing a quintessentially Indian instrument called the sarod.Last book read:"Inside Egypt - The Land of the Pharaohs on the Brink of a Revolution" by John R. Bradley

Quotes

"Cowardice asks the question, 'Is it safe?' Expediency asks the question, 'Is it politic?' Vanity asks the question, 'Is it popular?' But, conscience asks the question, 'Is it right?' And there comes a time when one must take a position that is neither safe, nor politic, nor popular, but one must take it because one's conscience tells one that it is right." -Martin Luther King Jr.

Brief Bio

Parvez Ahmed is Associate Professor at the University of North Florida in Jacksonville.
He is an active researcher whose articles have been published in leading national and international finance journals. He recently authored a book on “Mutual Funds titled Mutual Funds – Fifty Years of Academic Research.”
In addition he is a frequent commentator and speaker on Islam and the American Muslim experience.
He can be contacted via email - drparvezahmed@gmail.com